What is the EU Carbon Border Adjustment Mechanism (CBAM)?

CBAM is an EU policy that puts a price on the carbon emissions embedded in certain imported goods so they face similar carbon costs to products made in the EU. It is designed to reduce carbon leakage and support fair competition.

What changes for businesses when CBAM enters its definitive phase in 2026?

From 1 January 2026, businesses importing covered goods will need to purchase CBAM certificates for embedded emissions, manage higher costs for carbon-intensive products, and provide verified emissions data instead of only reporting emissions.

Which industries are most affected by CBAM first?

CBAM currently focuses on energy-intensive sectors such as steel, aluminium, cement, fertilizers, and electricity, which are among the most carbon-intensive and therefore most exposed to rising costs.

What the EU’s new carbon rules mean for your business in 2026

1 June 2026

What the EU’s new carbon rules mean for your business in 2026

Companies importing steel into the European Union (EU) are now facing a new cost, not for the material itself, but for the carbon behind it. And from 2026, this will become a reality for many businesses.

CBAM in simple terms

The EU Carbon Border Adjustment Mechanism (CBAM) is driving this change. It ensures that imported goods meet similar carbon standards to those produced in the EU. It prevents carbon leakage and supports fair competition.

In simple terms, CBAM puts a price on the carbon emissions linked to the products you import. As a result, if your suppliers emit more, you pay more.

What changes in 2026?

Since 2023, companies have already been reporting emissions under a transitional phase as part of the CBAM. However, from 1 January 2026, CBAM enters its definitive phase. This means that carbon now moves from reporting to a direct cost.

As such, companies will need to:

Purchase CBAM certificates for embedded emissions
Manage higher costs for carbon-intensive products
Provide verified emissions data.

Which industries will feel the impact first?

CBAM currently focuses on energy-intensive industries, including:

Steel
Aluminium
Cement
Fertilizers
Electricity

The above sectors are among the most carbon-intensive, which makes them the most exposed to rising costs under CBAM. Over time, this scope is expected to expand.

What CBAM readiness actually looks like

For many companies, the biggest challenge is not the regulation, but the data. Emissions data often comes from suppliers outside the EU, where standards differ. This requires new data flows, clear methodologies, and strong governance.

At the same time, CBAM introduces stricter requirements for emissions verification. The European Commission has established new accreditation rules, allowing verification bodies under the EU Emissions Trading System (EU ETS) to extend their scope to CBAM.

As a result, companies need a clear and reliable view of their emissions across the entire supply chain.

This requires:

Robust carbon footprint data
A life cycle assessment (LCA) approach
Strong measurement, reporting, and verification (MRV) systems.

Tools such as Corporate Carbon Footprints (CCF) and Environmental Product Declarations (EPDs) support compliance and reduce risk.

How Kiwa supports importers with EU-CBAM verification services

We are an accredited EU ETS verification body operating across several European countries, and we are expanding our scope toward ETS 2. Our experience in emissions verification and climate reporting forms the foundation for supporting CBAM compliance.

We can support you with the following:

Verification aligned with current and upcoming EU-CBAM requirements
Dry-run verifications to identify gaps and prepare for the definitive phase
Technical support in interpreting legislation and implementing acts
Expertise built on EU ETS and climate reporting experience.

Our services are specifically designed for importers in sectors such as steel, aluminum, cement, fertilizers, and electricity, as well as other energy-intensive industries involved in international trade.

Overhead view of three office workers reviewing documents and using a calculator at a white conference table with organized binders and paperwork.

Starting early makes a difference

The CBAM framework is still evolving, with new rules continuing to shape how it will work in practice. While this brings more clarity, it also raises expectations.

Waiting too long can mean rushed data collection, higher costs, and greater compliance risk. Companies that start early are in a much stronger position, with better data, lower risk, and more certainty as 2026 approaches.